Quest Merchant Bank earns stable outlook from GCR amid stronger market position

Quest Merchant Bank has reinforced its standing in Nigeria’s financial sector after GCR Ratings affirmed the bank’s national scale issuer ratings of BBB(NG) and A3(NG), while revising its outlook to Stable from Rating Watch Negative.

The ratings upgrade marks a significant step for the merchant bank following a period of transformation, reflecting renewed confidence in its financial strength, liquidity position, capital base and long-term growth prospects.

According to GCR, the Stable Outlook is supported by Quest Merchant Bank’s sound risk profile, stronger capitalisation and healthy liquidity levels, as well as the successful transition in ownership after its acquisition by EverQuest LLP following the divestment by FBN Holdings.

GCR also noted the bank’s growing influence within Nigeria’s merchant banking industry, stating that Quest Merchant Bank accounted for approximately 30 per cent of the sub-sector’s total assets as of 31 December 2025, underscoring its position as one of the country’s leading merchant banking institutions.

Afolabi Olorode, Ag. MD/CEO,
Quest Merchant Bank Limited

The agency further highlighted the successful completion of the bank’s ₦42.9 billion capital raise in March 2026, carried out in line with the Central Bank of Nigeria’s revised minimum capital requirements. According to GCR, the capital injection is expected to strengthen the bank’s capital adequacy ratio and support the next phase of expansion. 

Quest Merchant Bank’s asset quality and liquidity profile were also identified as key strengths behind the ratings affirmation. The bank maintained a non-performing loan ratio of 3.2 per cent, well below the wider banking industry average, while sustaining strong liquidity metrics and resilient earnings performance.

In addition, GCR acknowledged the strategic importance of the bank’s relationship with Custodian Investment Plc, citing opportunities for enhanced business growth, operational synergies and improved profitability over time.

Commenting on the development, Afolabi Olorode, Acting Managing Director and Chief Executive Officer of Quest Merchant Bank Limited, said “This outlook revision is a strong signal of confidence in the future of Quest Merchant Bank and the progress we have made in strengthening our organisation over the last year.

“Beyond the ratings action itself, this recognition reflects the resilience of our business, the quality of our balance sheet, and the confidence our clients, partners and stakeholders continue to place in the Bank.

“We have emerged from a defining transition period stronger, well-capitalised, and better positioned to capture the opportunities ahead. We remain committed to delivering innovative solutions, creating long-term value and supporting economic growth across the sectors we serve.”

The Stable Outlook reflects GCR’s expectation that Quest Merchant Bank will continue to maintain strong asset quality, stable funding and robust liquidity over the next 12 to 18 months, reinforcing confidence in the bank’s long-term strategic direction and operating fundamentals.